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Exercise 3-10A Patel Company issued 90,210 shares of $1 par value common stock (market value...

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Accounting

Exercise 3-10A Patel Company issued 90,210 shares of $1 par value common stock (market value of $6/share) for 95% of the common stock of Seely Company on January 1, 2014. Seely Company had the following assets, liabilities, and owners equity at that time: Book Value/Tax Basis Fair Value Difference Cash $19,590 $19,590 $0 Accounts receivable 113,870 113,870 0 Inventory (LIFO) 83,680 134,000 50,320 Land 27,080 49,850 22,770 Plant assets (net) 356,160 426,080 69,920 Total assets $600,380 $743,390 $143,010 Allowance for uncollectible accounts $10,920 $10,920 $0 Accounts payable 53,070 53,070 0 Bonds payable 211,300 193,110 18,190 Common stock, $1 par value 77,580 Other contributed capital 135,980 Retained earnings 111,530 Total equities $600,380 Collapse question part (a) Prepare the stock acquisition entry on the books of Patel Company, taking into account tax effects. Assume an income tax rate of 40%. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question:

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